HDFC Mutual Fund registered 65 percent gains from its issue price to close at 1,815.5 Rupees on the Bombay Stock Exchange (BSE), on August 06, 2018.
The second largest Asset Management Company in India, made an outstanding first appearance on the stock exchanges, listing at 1,735 Rupees per share, a premium of 57.7 percent over the issue price of 1,100 Rupees on BSE.
The HDFC arm’s share soared as high as 1,842.95 Rupees in intra-day trades on August 06, 2018. The share recorded an increase of 68 percent from its issue price before maintaining at 1,815.5 Rupees at the close of trades on BSE.
According to the BSE data, the HDFC AMC stock has seen the second highest listing gains in 2018 and the 6th highest ever since 2011.
Almost all the companies of the HDFC group trade at premium valuations. The similar fact has been imitated by the HDFC Mutual Fund arm too.
HDFC Asset Management Company, the second-biggest AMC in India, recorded an AUM (assets under management) of 3.07 lakh crore Rupees in the June quarter. The fund house’s equity-oriented AUM to total AUM of 51.3 percent is much higher than the industry average value of 43.2 percent.
HDFC MF’s 2,800 Crore Rupees worth IPO (Initial Public Offering) was open subscription from July 25, 2018, to July 27, 2018, with the price band fixed at 1,095 Rupees to 1,100 Rupees per share. HDFC AMC offered 2.54 Crore shares and the issue attracted huge investors, reported IIFL.
HDFC AMC has a reasonably higher share with regards to equity assets, which accounted for its higher profitability. As of December 2017, the AMC became the top mutual fund house with respect to equity assets share, according to Good Returns.
HDFC Mutual Fund, which is an alliance between HDFC (Housing Development Finance Corporation) and Standard Life Investments, has 209 branches and a network of more than 65,000 distributors. HDFC AMC is the “second mutual fund to go public” after Reliance Mutual Fund.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]